ST. JOSEPH, Mo. (RFD News) — The White House says China has committed to billions of dollars in U.S. agricultural purchases over the next year.
Jim McCormick with AgMarket.net said traders are waiting for those purchases to materialize.
“That is one of the situations the market’s going to continue to watch because of the uncertainty in the competition is the market just doesn’t want to see the a headline of hey, China committed to buy something from the White House. They want to see the Chinese come in here and actually fulfill some of these purchases. It’s not just soybeans. There was a headline from you might remember a few months back from the White House saying China had committed, I believe, to buy up to 17 billion dollars worth of agricultural goods. We’re still waiting to see if some of those purchase come purchases come through. If they do, and I assume they will, I think it’s just going to take time. That should be price supportive.”
McCormick said China ultimately needs American agriculture and hopes the country returns soon to fulfill the rest of the agricultural purchases announced by the White House.
